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Financial reconciliation - a short guide

Financial reconciliation - a short guide

 

Enquiries 

Here comes the end of the month/year/season and you want to do a financial reconciliation. Here are some documentation that may help you to achieve your goal: 

  1. Sales to payout. Typical questions : 

    1. How to make sure all my sales were payed out ? 

    2. How to know what sales where paid out in <time period> 

  2. Sales to invoices. Typical questions :  

    1. Why am I paying this amount this month? 

    2. How to find which transactions led to the invoices in < month> ? 

  3. Net revenues over a period of time

Sales to payout 

High level concept

Payout = sales - refunds - fees - adjustments 

 

To understand your payouts it is essential to understand the items that compose it : 

     1. High level visibility 

Head to Finance > Sales to payout > Payouts 

From here you can download 2 types of reports: 

  1.  

    1. Complete payouts report



      Here you can export the report containing all payouts within a certain date range.
      The top part, will give you a combined data of sales, refunds, costs, adjustments and payouts during the period
      The second part will give you the detail for each payout.

      Here you can see how much sales you made in this time period and how the converted to the payouts you received 

      Note: if you are settling in several currencies you will need to download this report for each currency you settle in ( you will see an additional dropdown to pick the currency next to the export button ) 





    2. Full details at lower scale 

While the first report will help you with general reporting, you may wonder how those numbers were calculated and what is behind them. For instance you may wonder what are those adjustments you see in your payout report. To drill more on each payout you can extract the detail of what element constitute it. 

This report will tell you which settled transactions, refunds, adjustments where included in a specific payout. The fees for the payout are the combination of the acquiring fees for each settled & refund transaction included + the transaction fees  ( processing fees) for the mentioned date ( in this example 03-01-2023 )  

IMPORTANT: the transaction fees included are NOT the transaction fees of the settled transactions included in this payout, they are all transaction fees that happened in the mentioned date ( see point 3 for more info) 

2. Condensed deep-diving at larger scale 

To get a visibility at larger scale you can download the report

A few explanation of items you will see here: 

Already discussed items: Settled; Refunded; Fee

MerchantPayout: payouts

InvoiceDeduction: "Amount due" from your invoice which are fees left after "Already deducted from settlement" 

Balancetransfer: amount that could not be payout in this batch, will be payed out in next batch. 

MerchantPayin: Funds you transferred in the account 

ReserveAdjustment :The funds being withheld from or released to the account due to funding or for using the Reserve register ( see your reserve balance in finance > balance ) 

 

for other items or more precision see: https://docs.adyen.com/reporting/settlement-reconciliation/transaction-level/settlement-details-report/

3. Full details at large scale 

To get a visibility of all transactions that are used to calculate the sales, fees and refunds at larger scale you can download the report> Interactive payment accounting report to get all transactions ove

From this report you may 

  1.  

    1. Calculate the sales  :
           Sum the "Captured" amount of the "Settled" type transaction 

      =SUMIFS(Sheet2!N:N;Shee

    2. Calculate the processing fees 
      Sum the "Processing Fee" amount of the "Received" and "SentForRefund" type transaction 

      =SUMIFS(Sheet2!V:V;Sheet2!J:J;"Received")+SUMIFS(Sheet2!V:V;Sheet2!J:J;"SentForRefund")

    3. Calculate the Acquiring fees
      Sum the "Commission", "Markup", "Scheme Fees" and “Interchange” amount of the "Settled" type transaction 

      =SUMIFS(Sheet2!Q:Q;Sheet2!J:J;"Settled")+SUMIFS(Sheet2!R:R;Sheet2!J:J;"Settled")+SUMIFS(Sheet2!S:S;Sheet2!J:J;"Settled")+SUMIFS(Sheet2!T:T;Sheet2!J:J;"Settled")

    4. Calculate the refunds
      sum the "Refunded"  transactions 
      =SUMIFS(Sheet2!N:N;Sheet2!J:J;"Refunded"

    5. You can recognize proximity from e-commerce transactions using the Unique Terminal ID column

    6. You can identify the shopper Country and Issuer country of the transaction using the columns of the same names.